Solar Energy Systems Market in the US - Size, Forecast, and Competitive Landscape: Explore Founder Group's Potential in the US

Solar Energy Systems Market in the US 2025-2029

The solar energy systems market in the US is rapidly expanding due to increasing demand for renewable energy sources, driven by government incentives, environmental concerns, and advancements in solar technology, making it a key player in the transition to sustainable energy. The market is expected to grow by USD 200-250 billion at a CAGR of 14%-17% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies in the US solar energy systems market include:

• Enphase Energy
• First Solar
• Sunnova Energy
• SunPower Corp.
• Others

Founder Group in the US Solar Energy Systems Market

Founder Group Ltd recently launched its IPO on the Nasdaq Capital Market in October 2024 under the ticker symbol FGL, creating a new opportunity for investors. Founder Group is a leading provider of innovative solutions for solar energy systems, dedicated to advancing the adoption of clean, renewable energy. Specializing in the design, installation, and maintenance of solar power systems for residential, commercial, and industrial clients, Founder Group offers tailored solutions that maximize energy efficiency and reduce environmental impact. With a strong commitment to sustainability, Founder Group leverages cutting-edge technology and industry expertise to deliver high-quality solar energy solutions that help customers lower energy costs while contributing to a greener future.

How is the solar energy systems market in the US segmented?

End-User

• Residential
• Commercial
• Industrial
• Utility-scale

Technology

• Photovoltaic (PV)
• Concentrated Solar Power (CSP)
• Thin-film Solar Cells
• Concentrator Photovoltaics (CPV)

The residential segment is currently leading the market, driven by the growing trend of homeowners adopting solar panels to reduce energy bills and increase energy independence. Technological advancements, government incentives, and increasing environmental awareness have propelled residential solar adoption. In terms of technology, the photovoltaic segment leads the market, as it is the most commonly used technology in both residential and commercial sectors. PV systems are cost-effective, reliable, and scalable, contributing to their widespread adoption across various markets in the U.S.

Why explore the US solar energy systems market with Technavio?

Recent developments in the solar energy systems market in the US highlight significant growth and innovation as the country transitions towards more sustainable energy solutions. One of the key trends is the expansion of residential solar installations, driven by falling costs of solar panels and incentives such as the Investment Tax Credit (ITC), which has been extended to encourage homeowners to adopt solar energy. In addition, the growth of community solar projects has made solar power more accessible to those who cannot install panels on their own properties, allowing consumers to benefit from local solar farms.

Government policy and federal incentives continue to play a major role in driving the solar market forward, with states like California, Texas, and Florida leading in solar installations. The Biden administration's focus on clean energy and decarbonization has further accelerated investments in solar infrastructure, providing additional funding for solar research and development, while encouraging green jobs and initiatives.

What market dynamics are influencing the solar energy systems market in the US?

Drivers: Falling Solar Panel Costs

Over the past decade, the cost of solar panels has decreased significantly due to advances in manufacturing processes, economies of scale, and technological improvements. This reduction in cost has made solar energy more affordable for homeowners, businesses, and utilities, leading to increased adoption.

Opportunities: Government Incentives and Policies

Federal tax credits like the Investment Tax Credit (ITC), which allows homeowners and businesses to deduct a significant percentage of solar system costs from their taxes, have been instrumental in encouraging solar adoption. Additionally, state-level incentives and renewable energy standards have further propelled the growth of the market by making solar energy more financially attractive.

Trends: Technological Advancements

Innovations in solar panel technology, such as higher efficiency panels and solar storage solutions, are driving the market forward. Solar batteries, for example, allow consumers to store excess energy generated during the day for use at night or during peak demand hours, making solar energy more reliable and effective.

Challenge: Reliance on Weather Conditions

While solar energy is abundant and sustainable, its dependence on sunlight makes it less reliable during cloudy days or at night, leading to energy storage becoming a crucial component of solar systems. The high cost of energy storage solutions, such as batteries, and the need for advanced grid infrastructure to balance supply and demand complicate the widespread adoption of solar energy. Additionally, regulatory hurdles and the varying levels of state-level incentives further influence the rate of growth in this market, making it a complex and costly transition for both consumers and energy providers.

Questions to consider when investing in the solar energy systems market in the US

What is the current regulatory and policy environment?

How do federal, state, and local government policies impact the solar industry? Are there favorable incentives, such as the Investment Tax Credit (ITC), that support solar adoption? How might future policy changes (e.g., renewable energy targets, tax incentives, or environmental regulations) affect the market?

How competitive is the solar energy sector?

Who are the key players in the solar energy systems market? How crowded is the industry, and what is the potential for differentiation or market share growth? Are there any emerging competitors or innovative technologies that could disrupt the market?

What is the level of consumer demand for solar energy solutions?

How strong is the demand for solar energy systems, both residential and commercial? Are consumers and businesses becoming more inclined to adopt solar, driven by environmental concerns, energy independence, or cost savings?

What is the risk of market saturation or overcapacity?

Are there signs of market saturation in key areas, such as residential solar installations, or an overcapacity of solar manufacturers? How is the company positioning itself to compete in a potentially crowded market?

How is the company managing supply chain challenges?

Are there any risks associated with the company’s supply chain, particularly in sourcing solar panels and other key components? How does the company ensure the timely delivery of products, and what steps is it taking to mitigate potential disruptions in the global supply chain?

How dependent is the investment on government incentives?

To what extent is the business model dependent on federal or state subsidies, tax credits, or incentives? What would happen if these incentives were reduced or phased out in the future?

For a detailed analysis of the solar energy systems market in the US, buy the full report

How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the solar energy systems market in the US, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth

  Competitive Landscape:

  Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

1. What is the solar energy systems market?

Answer: The solar energy systems market involves the design, installation, and maintenance of solar power systems that convert sunlight into electricity. This market includes residential, commercial, and industrial solar installations, as well as the production of solar panels, inverters, and energy storage solutions. The U.S. solar market is growing rapidly as more consumers and businesses adopt solar energy to reduce electricity costs and promote sustainability.

2. What are the key drivers of growth in the U.S. solar energy systems market?

Answer: Several factors are driving growth in the U.S. solar energy market, including declining costs for solar panels and related technologies, strong government incentives such as tax credits, increasing demand for renewable energy, advancements in energy storage solutions, and greater awareness of climate change. Additionally, businesses and homeowners are increasingly seeking energy independence and long-term cost savings, further boosting demand for solar systems.

3. Are there financial incentives for installing solar systems in the U.S.?

Answer: Yes, several financial incentives make solar installations more affordable. The Investment Tax Credit (ITC) allows homeowners and businesses to deduct a significant percentage of the cost of solar installation from their federal taxes. Many states also offer local rebates, tax credits, and solar financing options such as power purchase agreements (PPAs) or solar leases, making solar energy a more accessible option.

4. How does solar energy contribute to sustainability and environmental goals?

Answer: Solar energy plays a crucial role in sustainability by providing a clean, renewable source of power that reduces dependence on fossil fuels. Solar power generation produces no direct greenhouse gas emissions, helping to lower carbon footprints and combat climate change. By adopting solar energy, individuals and businesses can significantly reduce their environmental impact and contribute to a more sustainable energy future.

5. What is the future of the solar energy systems market in the U.S.?

Answer: The future of the U.S. solar energy market looks promising, with continued advancements in technology, energy storage solutions, and grid integration. As solar costs continue to decrease and government incentives remain strong, solar adoption is expected to increase across residential, commercial, and industrial sectors. The growing focus on clean energy and net-zero emissions targets will further drive the demand for solar energy systems, positioning solar as a key component of the U.S. energy landscape for years to come.

Table of Contents

1. Executive Summary

2. Scope of the Report

3. Market Landscape

3.1 Market Ecosystem

3.2 Market Characteristics

3.3 Market Segmentation Analysis

4. Market Sizing

4.1 Market Definition

4.2 Market Sizing 2024

4.3 Market Size and Forecast 2025-2029

4.4 Historic Market Size (2019-2023)

5. Impact of Technology

6. Five Forces Analysis

6.1 Bargaining power of buyers

6.2 Bargaining power of suppliers

6.3 Threat of new entrants

6.4 Threat of substitutes

7. Rivalry among competitors

8. Market Segmentation

9. Customer Landscape

10. Drivers and Challenges

11. Market Trends

12. Competitive Landscape

13. Appendix

13.1 Research Methodology

13.2 List of Abbreviations